quarter and third Thanks to welcome our earnings call.
today our me are Officer. Joining Chris Credit Officer; usual Chief and Hankerd, Chief Niles, as our John Financial
slide your we at some with is problems understand there that SECs the the website. in As
So, you on quarter third company own can our our find website. materials
GAAP quarter share by non-interest slide credit three earnings were driven higher $X.XX income. quality per and on strong third Our
were Excluding $X.XX acquisition our related costs earning share. a
quality $X potential credit problem and third million continue loans credit the metrics and a Our in decreases to loans. decrease driving for quarter in improve losses in provision nonaccrual
risk for our We been in will executed. plan have continue action credit oil mitigation de-risking largely and to opportunities additional portfolio, to pursue the gas but selectively
down transaction from portfolio, branch costs higher this the reducing deposits transaction proceeds and quarter, with We using network significantly other paid deposits Huntington mix securities improved our we investment in our coupled funding funding. acquired
repurchased in million available. we quarter million our prepaid $XX $XX leaving third year, optimize the of of we and capital adoption authorization our to continue quarter stock common the of We in next first CECL for as current
months nine the XXXX deposits annual loans grown drive and continue growth of at EPS have have growth annual a Turning a since first four, to at factors several X% slide X%. compound compound XXXX. of grown to in Total of rate growth rate
by growth. to growth the completed while Loan acquisition deposit contributed our in solid business driven lending, June Huntington commercial and was branch
As we First the Staunton anticipate Staunton approval further we and loan our received OCC enhance announced recently for deposit First purchase our portfolio and will franchise. we
over XXXX improved the XXXX same increased in a and Our result as efficiency metrics focus expense year-to-date period scale of management. have
to remain pay efficiency priorities support to capital market dividend, the investments competitive support driven Our acquisition of repurchase a and external in growth shares. book, and opportunistic organic
position paying build In our CECL dividends, year strong with $XXX XXXX million our line while we actions higher priorities capital upon adoption common branches Huntington including and to-date. repurchasing the in taking worth of acquiring preparation shares for in
slide mortgage down shown commercial offset and real five. quarter our were and and on for the residential decreases lending increases quarter in details modest as the from estate loan by home commercial portfolios business third were book. balances Loan prior are Total in our equity
downs the to construction encouraged remain quarter lower project CRE down. lending have loan to market. note permanent driven increased pay that by funding customers elevated the We outpaced the as the that rates in pay take
non-accruing of sale of mortgage While and loans. the the was million home-equity and million and down off, due residential mortgages residential portfolio approximately our sensitive higher we residential overall restructured prepayment pay originations had strong of sale $XX to of $XXX
portfolio in refinance. typically rate were increasingly long-term are higher by typically sold driven in homeowners into secondary adjustable rate held to incented our mortgages lower which the mortgages fixed-rate The borrowers market. payoffs refinancing have Further,
to down freed enabled risk higher our interest It CECL of our it by in sensitivity us pay the adoption. mortgages of of sales delevering rate asset to lowering advance also $XXX and million and The funding. part cost is strategy up reduced capital
the Turning gas commercial portfolio. commercial in portfolio, oil to primarily the and business lending was to and related decline
we discussed, let dynamics produced borrowers. us in more exposure and its ultimately our our to purposely reassess capital-intensive the gas have changing oil industry, volatile loan, lessen and we drilling have and our rate previously highly production to As specifically leveraged more
slide On our by decline largely we while credit see additional slightly middle $XXX the the plan we've risk portfolio fourth graph may in the can de-risking selectively quarter as you since million pursue six, and reduced oil first gas mitigation in quarter, the that of book the this balances we've opportunities. about in end executed
real construction third as remains the almost in strong may commercial $XXX weather believe commercial well-positioned XXXX, our commitments Unfunded in in pipeline fourth real increased quarter estate million estate we slow to becomes portfolio Our as while XXXX. funding quarter graph. since less have is shown grow the the right-hand favorable
our oil Looking of is anticipate guidance $XXX full loan in portfolio. now ahead, to previous X%, year reduced expectation due in XXXX residential we the and the our mortgages and sale, our come growth downsizing of factors we mentioned, below million gas just part
forecasting residential October/ to we mortgage some portfolio than down expect flat. November we're Additionally, and accelerate rather prepayment is in that
up to the $XXX deposits were from seven, a million Turning average second quarter.
overall In increase we as achieved growth beneficial a lower mixture cost funding. higher deposit decrease we deposits addition costs and to
Huntington $X the in driven Our quarter funding acquisition includes lower savings by June. which by the deposits demand and cost branch in billion increased third
sale by time reduce $XXX from we transaction securities deposit mortgages, $X.X sales investment prepayment home money and network costs Federal million advances runoff deposit, Bank funds higher loan sensitive market of funds from billion. Using and and and
to savings first Improved the XX% deposit deposits quarter third low-cost comprise now hand slide continues to and checking quarter. in our deposit reduction the shown in in mix, graph, decrease deposit strategy of mix transaction end network these XX% our detailed the of the right from of sources is the higher during cost on The as achieve up quarter eight. funds at
ratio while well a deposit range XX%, continue funding loan below that of historical gives cost within flexibility which keeping to strategy Our pursuing to our our us ratio was XXX%. the reducing sources
cost flows portfolio. We further drive the funding margin with quarter, lower expect anticipate ratio For dampen downward cash funding our improvement deposit securities mix that and loan low relatively to with we the fourth will mix along from improve our compression. help to
continued to nine, quarter use stable funds higher Turning we portfolio the down as institutional declining $X to and third reposition to source securities to billion securities reduction pay funding as of portfolio of rate a cost slide investment in a the the environment. for our we
yield securities we security short security We in reduced municipal by $XXX with replacing essentially taxable duration tax-exempt higher-yielding by flat securities. longer held yielding our lower and million our portfolio increased about duration balances
portfolio from an higher total to The next reach level several that portfolio months of taxable we'll to our cost about securities anticipate XX% in of down use and the we level cash We're runoff targeting assets, XX% pay continue XXXX. overall to we'll early funding.
$XXX the of million and $X slide XX, million second points our previous interest was margin basis quarter to income the net from quarter. Turning six was from X.XX% net decrease interest down
income several by factors. was interest net caused Lower
averaged and impacting side basis month commercial the asset and lending business the real over decreased state On one third XX second quarter commercial quarter and LIBOR yield. negatively points from
interest and rates were also decreased in pay loan. term mortgage our higher Long resulting coupon portfolio of in elevated off refinancing residential
drove deferred reducing recognition rate mortgage. prepayment increased of further this costs origination Additionally accelerated our
persisting the LIBOR Looking pressured continue yields be asset ahead expect will that by mortgage compression rates. we and lower to
by most deposit XX cost total interest-bearing rates deposit side deposit driven On the category. our points basis in decreased improved our mix liability lower and
fourth the remained the to will a anticipate fourth quarter reduce cost the funding that of further ratio funds grow quarter deposit our and us to low, to without enabling source in given decrease We funding. for loan portfolio there paying loan that remain cost our relatively book further securities up deposit us will higher allowing
guidance margin interest assets actions taken and lower will to we the and us X.XX% the enable higher net our about were is X.XX%. interest weigh on delever sheet by balance of lower rates asset cost we've funding yield continue year full low-end meet to to-date Year our believe while yield, reducing the will to margin
a point the single rate fed quarter. basis That outlook assumes cut XX in fourth
Turning non-interest XX, quarter million was up last to $XX third million $X slide from of income $XXX year-over-year. and million quarter up
and we mix primarily part The investment gains funding last was that strategy. improvement increase to over sales just quarter of realized due delevering on
loan quarter. mortgage including mortgages of sales portfolio sensitive mortgage drove the increase million sale $XXX from the banking the in higher Additionally of prepayment income
lower partially commission. offset These seasonally insurance were gains by
Moving to expense to up The acquired quarter X was branches, while Huntington increase $XXX our full due were expense grew, staffing from branches. flat non-interest second million a quarter. was the the cost partially hold occupancy million in of personnel we slide of to the additional XX, occupancy expense able despite
TV plant Advertising expense in campaign. quarter the and to third higher digital was due also
the the fourth quarter environment. impact negative action ahead of challenging interest to we're the to offset Looking rate taking
and integration expenses includes which in expect in incur will in First $X million We approximately ongoing lower flat, enable operating charges modestly restructuring That XXXX. non-interest cost, QX Staunton cost. us both to maintain to
range our million. We the dissipate expenses to $XXX of year $XXX million charges XXXX non-interest restructuring these full put will in
and remains to Turning improved of gas slide strong loan. from the our and charge-off quality second quarter the oil excluding credit XX, banks credit metrics
the loans and Non-accrual non-accrual problem $XX loans. mortgage portfolios. to loans potential primarily in decreased real reductions from quarter decreased and loans million resi Potential oil and home million driven portfolio the estate problem of $XXX equity the gas smaller $XX in commercial million the by reflecting sales
from charge-offs Net the in book. quarter million the were and oil majority coming $XX with gas
fourth charge-offs will We to the in level typical quarter. expect more returned
last quarter. million, $X for was million provision losses credit $X Our down from
gas the saw As portfolio. in and we risk, oil against previously discussed for we'd the already and provided reserve we
we future and be of oil believe and within patterns normal manageable such As historical provisioning. will losses our loan gas
losses total loans previous for quarter. X.XX% allowance was loan aggregate of from The down
about XX%. our continue As overall we expect we increase CECL disclosed previously credit to by that XX% will for allowance losses to
we'll that, with be questions. take your And happy to
